Elon Musk Threats to End Twitter Deal Over fake Account Data

0
68

The Billionaire Elon Musk, threatens to terminate Twitter deal over bot account data. Musk’s lawyer accuses the platform of ‘thwarting his information rights’ by not providing more data on fake accounts.

Elon Musk Threats to End Twitter Deal Over fake Account Data

In a letter sent to Twitter Monday morning, an attorney for Elon Musk wrote that the company “is actively resisting and thwarting his information rights” in regards to a dispute over spam accounts, and threatened to terminate the deal.

Billionaire Elon Musk has threatened to pull out of a $44 billion deal to buy Twitter if the social media platform does not provide data he is requesting on bot, fake and spam accounts.

“This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement,” they wrote.

Twitter said it intends to close the deal at the agreed price and terms.

“Twitter has and will continue to cooperatively share information with Musk to consummate the transaction in accordance with the terms of the merger agreement,” the company said in a statement on Monday.

Of course, it isn’t immediately clear whether the threat is to be taken seriously, or whether Musk simply wants to negotiate a better price for the company. As of market open Monday, Twitter stock was trading at just over $40 per share, well below the $54.20 that Musk agreed to pay. A larger market correction in the tech space since Musk’s offer was accepted saw nearly every company in the sector lose market cap, and he may be looking for a way to get a discount.

That being said, the deal terms have been signed, and unless Twitter is in breach of the contract or there has been a serious change to Twitter’s business, it could be a difficult case to argue. But that won’t stop Musk and his team from trying.

Brian Quinn, a law professor at Boston College, also told the Associated Press news agency that Musk is “looking for a way out of the deal or something that will get leverage for a renegotiation of the price”.

If Musk walks away from the deal, he could be on the hook for a $1billion breakup fee, AP and Reuters reported.

Download The FreeDom News app For Iphone and Android – Share the Apps with Friends and Family.